The US Securities and Exchange Commission (SEC) has included miner producer Canaan on a preliminary list of Chinese companies to be delisted from US stock exchanges.

According to the regulator, 88 firms located in foreign countries benefited from the services of auditors whose documents could not be verified. PCAOB. This violates the provisions of the Foreign Companies Liability Act 2020.

The commission noted that the ban on the disclosure of inspection results is the “attitude of the authorities” of China.

Foreign issuers designated by the SEC have until May 25 to appeal the regulator’s decision.

“The company is actively exploring possible solutions to protect the interests of stakeholders. We continue to comply with applicable laws and regulations in both China and the United States, and we are committed to maintaining Nasdaq listing status,” said Canaan.

According to Reuters, in April Beijing proposed changes to privacy rules for foreign trade firms to resolve an audit dispute with the United States. If that fails, U.S. exchanges could delist about 240 Chinese companies by 2024.

In November 2019, Canaan became the first mining equipment manufacturer to go public. During its IPO on the Nasdaq, the company raised $90 million by placing 10 million deposit slips at a price of $9.

At the time of writing, the market is valuing Canaan shares at $3.50. In July 2021, securities prices recorded a high of over $34.5, while in June 2020 they dropped below $2.

Recall that in June 2020, another Chinese miner producer Ebang International Holdings entered the Nasdaq.